As the 2024 presidential election approaches, experts predict it will be one of the most expensive elections in American history. Among key candidates, former President Donald Trump is employing an aggressive digital advertising strategy, investing hundreds of thousands of dollars into platforms like Facebook and Google.
This campaign is not just about promoting his candidacy but also about capitalising on the controversies surrounding his legal troubles to fundraise and gather crucial voter data.
Blip in digital spending
In recent weeks, the digital advertising game has intensified, especially for Trump. His campaign is making a bold statement with increased spending, investing hundreds of thousands of dollars into online ads. Data from Bully Pulpit Interactive indicates a substantial leap in Trump's digital ad expenditure, reaching approximately $258,000 between March 19 and April 7—an incredible rise from just $8,000 in the preceding three weeks.
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This strategy mirrors Trump's successful approach during the 2020 election, where digital platforms played a crucial role in reaching voters.
Trump's campaign is capitalizing on his ongoing legal troubles, which have been a central theme in his fundraising efforts. The former president has framed these challenges as political persecution, rallying his base and driving small-dollar donations. The use of a fake mugshot has become emblematic of this strategy, serving as a rallying point for supporters and a unique tool for fundraising.
Trump Media soars to $10 billion market cap
Donald Trump’s emerging social media platform, Truth Social, has surpassed X (formerly Twitter) in valuation, thanks to a significant surge in its stock price in the lead-up to the election. The market capitalization of Trump Media and Technology Group (TMTG) has now reached approximately $10.8 billion, outpacing X’s estimated worth of $9.4 billion. This calculation for X’s market cap is based on Fidelity’s investment, as reported in September disclosure forms.
At the end of September, TMTG’s stock was at a record low of $12.15. However, it has since skyrocketed by 345% alongside improvements in Trump’s political prospects. The trading activity surrounding TMTG appears to be more closely tied to the political climate of the Trump campaign rather than its financial performance. As a result, TMTG has earned the label of a meme stock.
The company is currently grappling with substantial financial losses and minimal revenue. In the second quarter of this year, it reported just $837,000 in revenue, while accumulating losses of $344 million in the first half of 2024.
While TMTG has not disclosed user metrics, estimates suggest that Truth Social's daily active users fell to about 76,000 earlier this year, according to Similarweb data. In contrast, X boasts hundreds of millions of users, with at least 250 million active daily users as of March. However, the precise figures for X remain uncertain since it is no longer publicly traded.
Trump outspends democratic field
That spending gap is extraordinary. The Trump campaign has spent tens of millions in quietly doubling the whole Democratic field's ad buys on Facebook and Google. That was the approach to digital that Trump's campaign promised to adopt, assimilating technology and Big Data for mobilizing his hard core base and wider donor networks.
On the other hand, Harris has spent far more money on digital advertising than Trump. She spent $57 million on Google and Meta ads since Biden left the race on July 21, as opposed to Trump's $5.6 million. The Biden-Harris campaign has spent a total of $139 million on tech platforms since the start of the year, emphasizing a well-rounded approach to reaching voters and small-dollar donors.
TikTok: New frontier for voter engagement
While all the old platforms are changing, both Trump and Harris have found a battleground in TikTok, which gives an algorithm for a very diversified video stream discussing the election, thereby attracting views and influencing voter sentiment. The candidates have realized that this is an important avenue for engaging with the youth.
In just two months since he joined TikTok, Trump accrued 9.5 million followers; Harris gained more than 4.1 million followers in one month since opening her account in July. This digital advancement cements their attempt at reaching a constituency that they have previously found elusive to engage using traditional media platforms.
It is to be seen whether the high-tech digital campaign of Trump is going to work or not, especially against a well-funded and strategically agile opponent like Harris. The 2024 election is going to be an interesting contest of not just candidates but innovative strategies amidst the ever-changing landscape of digital media.
@realdonaldtrump YOUR FUTURE IS AT STAKE
♬ original sound - President Donald J Trump
Both candidates will have to navigate a highly complex set of voter concerns, legal issues, and technological change. The last leg will be quite crucial for both candidates as they employ digital strategies that influence the minds of voters and help them vote.
Unprecedented spending and a growing dependence on social media are putting the battle for the White House on unprecedented footing.
